United Prosperity is a web based non-profit micro-credit organization. Unlike other micro-credit or person-to-person lending organizations, they do not provide loans straightaway to the micro-entrepreneur. Instead, the micro-loans are employed for offering a guarantee to the local bank, which is willing to lend money to the micro-entrepreneur. In general, the local bank would lend almost twice the amount offered by the micro-lender’s guarantee, thus offering more leverage than traditional micro-credit.

Another benefit of this system of financing the entrepreneurs is that it facilitates the entrepreneurs to build up a relationship and a credit history with their local bank that allows the micro-entrepreneur to become independent of the micro-lenders in the long run. A not so healthy feature of conventional micro-credit models that is often criticized is that they tend to encourage the micro-entrepreneur to keep depending on the lenders for long periods. As a result the entrepreneur is unable to develop a relationship with the banks.

United Prosperity offers you an opportunity to directly help deprived entrepreneurs and change the lives of their families and communities.

Their model of Guarantee-Loan-Impact is matchless as it allows you to:

* Help people straightaway
* Maximize your impact
* Transform communities
* Ease poverty

You may choose the entrepreneur whom you want to support and each $1 you pay works as collateral or a loan guarantee with a bank. On the basis of this guarantee, the bank offers a loan of almost $2 to the entrepreneur via a partner Microfinance Institution (MFI).

Once a guarantee is provided, you can follow the progress of the entrepreneur online. As the loan is paid back, you too get your money back which you may recycle by guaranteeing the loan for a new entrepreneur.

How it works

*Having screened the entrepreneur, our microfinance partner uploads their profiles. Normally the microfinance partner would give loan from their working capital as they want the entrepreneur to get started on developing their business.

*Leaf through the profiles of the entrepreneurs on United Prosperity’s website. Decide whom you would prefer to support and guarantee a loan via PayPal.

*United Prosperity combines the guarantees of multiple loans for its microfinance partner and provides a guarantee to the bank. The funds are offered as collateral to the bank.

*On the basis of the guarantee from United Prosperity, the bank sanctions a loan which is more than the total amount of the guarantee.

If the loan is already paid to the entrepreneur, the microfinance institution replenishes its working capital. If not, it is paid to the entrepreneur.

*The entrepreneurs make use of loan to start or further their businesses. They progressively start paying back their loans. You can keep a track of the repayments made by the borrower on the website of United Prosperity that keeps entrepreneur’s profile updated all the time.

*When the entrepreneur has paid back the loan to the bank in full, the bank releases the guarantee of United Prosperity. Consequently, your contribution to loan is set free which you can withdraw to your account with PayPal or use the same for financing another entrepreneur.

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